| Chapter 226 |
| 2021 -- H 6423 SUBSTITUTE A Enacted 07/08/2021 |
| A N A C T |
| RELATING TO TOWNS AND CITIES --WEST WARWICK PENSION PLAN |
Introduced By: Representatives Noret, and Serpa |
| Date Introduced: June 11, 2021 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby |
| amended by adding thereto the following chapter: |
| CHAPTER 21.5 |
| WEST WARWICK PENSION PLAN |
| 45-21.5-1. Legislative findings. |
| The general assembly finds and declares the following: |
| (1) All Rhode Islanders deserve retirement security, including those who have spent their |
| careers serving their communities as first responders, school, and municipal employees; |
| (2) The town of West Warwick’s pension plans are currently in “critical status” as defined |
| in § 45-65-4 which resulted in the town of West Warwick undergoing pension reform in 2014 and |
| the submission of a funding improvement plan in accordance with § 45-65-6; |
| (3) The town of West Warwick, the West Warwick school department, the labor and other |
| organizations representing its employees, first responders, and retirees, and the state of Rhode |
| Island are united in their desire to see the town of West Warwick remain on the path of fiscal health, |
| and that the predictability and sustainability of the pension system is vital to maintaining fiscal |
| health for the town of West Warwick and retirement security for its employees, first responders |
| and retirees; and |
| (4) The general assembly adopts this chapter to facilitate the assistance of the municipal |
| employees' retirement system (MERS) of the state of Rhode Island in administering the local West |
| Warwick pension plans. |
| 45-21.5-2. Alternative acceptance by the town of West Warwick for West Warwick |
| school and municipal employees. |
| (a) The provisions of this section shall apply only to the locally-administered plan, |
| excluding police and fire within the town of West Warwick, hereinafter referred to as the "West |
| Warwick plan, excluding police and fire." |
| (b) No later than August 31, 2021, West Warwick and the West Warwick school committee |
| may accept the provisions of this chapter, by resolution or an ordinance of its governing body, |
| stating the group or groups of employees to be included as provided in § 45-21-4; provided that, |
| any and all labor organizations, representing active employees of the municipality and active non- |
| certified school employees to be included, have assented to such participation of their respective |
| memberships by ratification of amendments to the applicable collective bargaining agreement by a |
| majority vote of those members of any such labor organization present and voting; and, provided |
| further that, any applicable final and consent judgments are amended. A copy of the resolutions or |
| ordinance and proof of assent from the applicable labor organization, and/or amendment to any |
| applicable final and consent judgments, shall be immediately forwarded to the retirement board for |
| review. A vote of the retirement board to accept the entry of the group or groups into the system |
| provided in this section shall be required. |
| (c) The West Warwick plan, excluding police and fire, shall be closed to new members on |
| August 31, 2021. |
| (d) Following acceptance as provided in subsection (b) of this section, members of the |
| West Warwick plan, excluding police and fire, in active service on August 31, 2021, shall continue |
| to be subject to all plan provisions, as set forth in the 2006 pension plan as modified by any |
| collective bargaining agreement, memorandum of agreement, arbitration award, final and consent |
| judgment and/or any individual contractual agreement between any nonunion employee and the |
| town and/or school committee in effect on August 31, 2021 (hereinafter collectively "the 2006 |
| pension plan as modified") . These provisions shall include, but not be limited to, applicable |
| retirement ages, plan restrictions, accrual rates, contribution requirements, eligibility requirements, |
| benefit calculations and any and all provisions related to postemployment benefits, death benefits, |
| cost-of-living adjustments, and rules permitting employment in and pension credit accrual within |
| other municipalities or the state which that are participants in any other retirement plan |
| administered by the state. The intent of this section is that all members of the West Warwick plan, |
| excluding police and fire, shall continue to enjoy all benefits and be subject to the same terms of |
| the pension plan in existence on August 31, 2021, and that the municipal employees’ retirement |
| system shall administer, but not change, the pension plan benefits and terms formerly provided by |
| the town unless expressly provided otherwise in this section. |
| (e) Disability determinations for new applications received on or after the date assets are |
| transferred pursuant to §45-21.5-6 shall be made by the retirement board, subject to the procedures |
| and standards of §§ 45-21-19, 45-21-22, 45-21-23, and 45-21-24, for members in active service on |
| August 31, 2021. If a disability retirement pension, including a partial disability, is granted, the |
| member shall receive benefits provided by the West Warwick pension plan, excluding police and |
| fire, pursuant to the 2006 pension plan as modified in effect on August 31, 2021. |
| (f) Subject to the provisions of subsection (b) of this section being met, new employees |
| hired on or after September 1, 2021, shall be subject to the provisions of chapters chapter 21 or |
| 21.2 of this title as applicable, including all applicable disability provisions and benefits provided |
| by §§ 36-10.3-4 and 45-21-52. |
| (g) Members of the West Warwick plan, excluding police and fire, in active service on |
| August 31, 2021, shall have a one-time irrevocable option to become subject to all of the provisions |
| of chapters chapter 21 or 21.2 of this title as applicable, including all applicable disability |
| provisions and benefits provided by §§ 36-10.3-4 and 45-21-52. Such election shall be made on or |
| before September 30, 2021. |
| (h) Notwithstanding any provisions in § 45-21-42.2 to the contrary, the cost to evaluate |
| West Warwick's prospective participation in the retirement system pursuant to this section or § 45- |
| 21.5-3, shall be borne by the retirement board. |
| (i) Notwithstanding any provisions in § 45-21-43.1 to the contrary, determination of the |
| employer contribution rate of the closed West Warwick pension plan, excluding police and fire, |
| pursuant to this section shall be computed using an amortization period for the unfunded actuarial |
| accrued liability as determined by the board, based upon the recommendation of the plan's actuary. |
| Future actuarial gains and losses accruing within a plan year will be amortized over individual new |
| twenty-(20) year (20) closed periods consistent with § 45-21-43.1(c). |
| (j) Notwithstanding any provisions in § 45-21-56 to the contrary, if a West Warwick |
| pension plan, excluding police and fire, pursuant to this section is in critical status as defined in § |
| 45-65-4, and a member of the West Warwick pension plan, excluding police and fire, leaves |
| employment and is hired by another participating municipality that is not in critical status as defined |
| in § 45-65-4, then the retirement system shall transfer the amount of the member’s contributions |
| and member's total accrued liability with the West Warwick pension plan, excluding, police and |
| fire, multiplied by the funded status of the West Warwick pension plan, excluding, police and fire, |
| to the account of the current employing municipality. |
| (k) Upon the conditions of subsection (b) of this section being met, the town of West |
| Warwick and the West Warwick school committee shall remain liable to the retirement system for |
| the cost of funding a retirement system for its employees who are participants of the system as |
| provided herein, and the retirement board maintains the right to enforce payment of any liability as |
| provided in chapter 21 of this title. |
| (l) Subject to the provisions of subsection (b) of this section being met, the West Warwick |
| plan, excluding police and fire, and the provisions of this section shall be administered in the same |
| manner provided in chapter 21 of this title; credits for prior service and collection of contributions |
| are determined through reference to that chapter; provided that, where the provisions of that chapter |
| conflict with the provisions of this chapter, then the provisions of this chapter shall control. Liability |
| of contributions is enforced in the same manner as stated in chapter 21 of this title. |
| 45-21.5-3. Retiree participation in retirement plan for school and municipal |
| employees. |
| (a) The provisions of this section shall apply only to the locally-administered plan, |
| excluding police and fire, within the town of West Warwick. |
| (b)(1) Notwithstanding any provision of this chapter to the contrary, no later than August |
| 31, 2021, West Warwick and the West Warwick school committee may accept the provisions of |
| this chapter by resolution or an ordinance of its governing body stating the group or groups of |
| retired former employees to be included as provided in § 45-21-4; provided that, a majority of |
| retired former employees have consented in writing to joining the system or any duly constituted |
| retiree organization that represents said retired former employees has assented to joining the |
| system; and, provided further that, any applicable final and consent judgments are amended. A |
| copy of the resolutions or ordinance and proof of assent from the applicable retiree organization, |
| and/or amendment to any applicable final and consent judgments, shall be immediately forwarded |
| to the retirement board for review. A vote of the retirement board to accept the entry of the group |
| or groups of retirees into the system shall be required. |
| (2) For purposes of this section, "retired former employees" means any member of the West |
| Warwick pension plan, excluding police and fire, who has retired prior to September 1, 2021. |
| (c)(1)Notwithstanding any other provisions of this section or other applicable law, upon |
| acceptance into the system, all retired former employees and their beneficiaries shall continue to |
| be subject to all plan provisions, as set forth by the plan, collective bargaining agreement, |
| memorandum of agreement, arbitration award, final and consent judgment, and/or any individual |
| contractual agreement between any nonunion employee and the town and/or school committee in |
| effect upon the retired former employee’s date of retirement. These provisions shall include, but |
| are not limited to,: applicable retirement ages, plan restrictions, accrual rates, contribution |
| requirements, eligibility requirements, benefit calculations, and any and all provisions related to |
| postemployment benefits, death benefits, cost-of-living adjustments, and rules permitting |
| employment in and pension credit accrual within other municipalities or the state which that are |
| participants in any other retirement plan administered by the state. The intent of this section is that |
| all retired former employees of the West Warwick plan, excluding police and fire, shall continue |
| to enjoy all benefits and be subject to the same terms of the pension plan in existence upon his or |
| her their date of retirement and that the municipal employees' retirement system shall administer, |
| but not change, the pension plan benefits and terms formerly provided by the town unless expressly |
| provided otherwise in this section. |
| (2) Retired former employees under this section shall not be entitled to any retirement |
| allowance or benefit from the system otherwise available or calculated pursuant to the provisions |
| of §§ 45-21-16, § 45-21-27, § 45-21-51, or § 45-21-51.1 with regard to his or her their West |
| Warwick pension benefit. |
| (d) The cost to evaluate West Warwick’s prospective membership in the retirement system, |
| and costs related to obtaining consent of retirees to join the system pursuant to this section, shall |
| be borne by the retirement board. |
| (e) Upon the conditions of subsection (b) of this section being met, the town of West |
| Warwick and the West Warwick school committee shall remain liable to the retirement system for |
| the cost of funding a retirement system for its retired employees who are members of the system as |
| provided herein, and the retirement board maintains the right to enforce payment of any liability as |
| provided in chapter 21 of this title. |
| (f) Subject to the provisions of subsection (b) of this section being met, the provisions of |
| this section shall be administered in the same manner provided in chapter 21 of this title; provided |
| that, where the provisions of that chapter conflict with the provisions of this chapter, then the |
| provisions of this chapter shall control. Liability of the municipality is enforced in the same manner |
| as stated in chapter 21 of this title. |
| 45-21.5-4. Alternative acceptance by the town of West Warwick of optional |
| retirement for police and firefighters. |
| (a) The provisions of this section shall apply only to the locally-administered plan for |
| police and fire within the town of West Warwick hereinafter referred to as the "West Warwick plan |
| for police and fire." |
| (b) No later than August 31, 2021, West Warwick may accept the provisions of this chapter, |
| by resolution or an ordinance of its governing body, stating the group or groups of public safety |
| employees to be included as provided in § 45-21-4; provided that, any and all labor organizations, |
| representing active police and fire of the municipality to be included, have assented to such |
| participation of their respective memberships by ratification of amendments to the applicable |
| collective bargaining agreement by a majority vote of those members of any such labor |
| organization present and voting; and, provided further that, any applicable final and consent |
| judgments are amended. A copy of the resolution or ordinance and proof of assent from the |
| applicable labor organization, and/or amendment to any applicable final and consent judgments, |
| shall be immediately forwarded to the retirement board for review. A vote of the retirement board |
| to accept the entry of the group or groups into the system as provided in this section shall be |
| required. |
| (c) The West Warwick plan for police and fire shall be closed to new members on August |
| 31, 2021. |
| (d) Following acceptance as provided in subsection (b) of this section, members of the |
| West Warwick plan for police and fire in active service on August 31, 2021, shall continue to be |
| subject to all of the provisions, as set forth in the 2006 pension plan as modified by any collective |
| bargaining agreement, memorandum of agreement, arbitration award, final and consent judgment |
| and/or any individual contractual agreement between any non-union employee and the town in |
| effect on August 31, 2021 (hereinafter collectively “the 2006 pension plan as modified”). These |
| provisions shall include, but not be limited to,: applicable retirement ages, plan restrictions, accrual |
| rates, contribution requirements, eligibility requirements, benefit calculations, and any and all |
| provisions related to post-employment benefits, death benefits, cost-of-living adjustments, and |
| rules permitting employment in and pension credit accrual within other municipalities or the state |
| which that are participants in any other retirement plan administered by the state. The intent of this |
| section is that all members of the West Warwick plan for police and fire shall continue to enjoy all |
| benefits and be subject to the same terms of the pension plan in existence on August 31, 2021, and |
| that the municipal employees’ retirement system shall administer, but not change, the pension |
| benefits and terms formerly provided by the town unless expressly provided otherwise in this |
| section. |
| (e) Disability determinations shall be made by the retirement board, subject to the |
| procedures and standards of §§ 45-21.2-7 (except for the eligible service requirements) and 45- |
| 21.2-9 as applicable, for members hired prior to September 1, 2021. If a disability retirement |
| pension is granted, the member shall receive benefits provided by the West Warwick pension plan |
| pursuant to the 2006 pension plan as modified in effect on August 31, 2021. If the retirement board |
| denies the application for an accidental disability pension, the member may submit an appeal to the |
| Rhode Island workers’ compensation court pursuant to §§ 45-21.2-9(f) through (j). |
| (f) Subject to the provisions of subsection (b) of this section being met, new employees |
| hired on or after September 1, 2021, shall be subject to all of the provisions of chapter 21.2 of this |
| title as applicable, including all applicable disability provisions and benefits provided by §§ 36- |
| 10.3-4 and 45-21-52. |
| (g) Members of the West Warwick plan for police and fire in active service as of August |
| 31, 2021, and civilian employees of the West Warwick Fire Department as of August 31, 2021, |
| who are part of the firefighters' bargaining unit but are members of the West Warwick plan |
| excluding police and fire, shall have a one-time irrevocable option to become subject to the |
| provisions of chapters chapter 21 or 21.2 of this title as applicable, including all applicable |
| disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52. Such election shall be |
| made on or before September 30, 2021. |
| (h) Notwithstanding any provision in § 45-21-42.2 to the contrary, the cost to evaluate |
| West Warwick prospective participation in the retirement system pursuant to this section or § 45- |
| 21.5-3, shall be borne by the retirement board. |
| (i) Notwithstanding any provision in § 45-21-43.1 to the contrary, determination of the |
| employer contribution rate of the closed West Warwick pension plan for police and fire pursuant |
| to this section shall be computed using an amortization period for the unfunded actuarial accrued |
| liability as determined by the board, based upon the recommendation of the plan's actuary. Future |
| actuarial gains and losses accruing within a plan year will be amortized over individual new twenty |
| (20) year closed periods consistent with § 45-21-43.1(c). |
| (j) Notwithstanding any provision in § 45-21-56 to the contrary, if a West Warwick pension |
| plan for police and fire pursuant to this section is in critical status as defined in § 45-65-4, and a |
| member of the West Warwick pension plan for police and fire leaves employment and is hired by |
| another participating municipality that is not in critical status as defined in § 45-65-4, then the |
| retirement system shall transfer the amount of the member’s contributions and member's total |
| accrued liability with the West Warwick pension plan for police and fire, multiplied by the funded |
| status of the West Warwick pension plan for police and fire, to the account of the current employing |
| municipality. |
| (k) Upon the conditions of subsection (b) of this section being met, the town of West |
| Warwick shall remain liable to the retirement system for the cost of funding a retirement system |
| for its employees who are members of the system as provided herein, and the retirement board |
| maintains the right to enforce payment of any liability as provided in chapter 21 of this title. |
| (l) Subject to the provisions of subsection (b) of this section being met, the West Warwick |
| plan for police and fire and the provisions of this section shall be administered in the same manner |
| provided in chapter 21 of this title; credits for prior service and collection of contributions are |
| determined through reference to that chapter; provided that, where the provisions of that chapter |
| conflict with the provisions of this chapter, then the provisions of this chapter shall control. Liability |
| of contributions is enforced in the same manner as stated in chapter 21 of this title. |
| 45-21.5-5. Retiree participation in optional retirement plan for police and fire. |
| (a) The provisions of this section shall apply only to the locally-administered plan for |
| police and fire within the town of West Warwick. |
| (b)(1) Notwithstanding any provision of this chapter to the contrary, no later than August |
| 31, 2021, West Warwick may accept the provisions of this chapter by resolution or an ordinance |
| of its governing body stating the group or groups of retired former employees to be included as |
| provided in § 45-21-4; provided that, a majority of retired former employees have consented in |
| writing to joining the system or any duly constituted retiree organization that represents said retired |
| former employees has assented to joining the system; and, provided further that, any applicable |
| final and consent judgments are amended. A copy of the resolution or ordinance and proof of assent |
| from the applicable retiree organization, and/or amendment to any final and consent judgments, |
| shall be immediately forwarded to the retirement board for review. A vote of the retirement board |
| to accept the entry of the group or groups of retirees into the system shall be required. |
| (2) For purposes of this section, "retired former employees" means any member of the West |
| Warwick plan for police and fire who has retired prior to September 1, 2021. |
| (c)(1) Notwithstanding any other provisions of this section or other applicable law, upon |
| acceptance into the system, all retired former employees and their beneficiaries shall continue to |
| be subject to all plan provisions, as set forth by the plan, collective bargaining agreement, |
| memorandum of agreement, arbitration award, final and consent judgment and/or any individual |
| contractual agreement between any nonunion employee and the town in effect upon the retired |
| former employee’s date of retirement. These provisions shall include, but are not limited to,: |
| applicable retirement ages, plan restrictions, accrual rates, contribution requirements, eligibility |
| requirements, benefit calculations and any and all provisions related to postemployment benefits, |
| death benefits, cost-of-living adjustments, and rules permitting employment in and pension credit |
| accrual within other municipalities or the state which that are participants in any other retirement |
| plan administered by the state. The intent of this section is that all retired former employees of the |
| West Warwick plan, including police and fire, shall continue to enjoy all benefits and be subject to |
| the same terms of the pension plan in existence upon his or her their date of retirement and that the |
| municipal employees’ retirement system shall administer, but not change, the pension plan benefits |
| and terms formerly provided by the town unless expressly provided otherwise in this section. |
| (2) Retired former employees under this section, shall not be entitled to any retirement |
| allowance or benefit from the system otherwise available or calculated pursuant to the provisions |
| of §§ 45-21.2-6, § 45-21.2-13, § 45-21.2-20, § 45-21.2-21, or § 45-21.2-22 with regard to his or |
| her their West Warwick pension benefit. |
| (d) The cost to evaluate West Warwick’s prospective membership in the retirement system, |
| and costs related to obtaining consent of retirees to join the system pursuant to this section, shall |
| be borne by the retirement board. |
| (e) Upon the conditions of subsection (b) of this section being met, the town of West |
| Warwick shall remain liable to the retirement system for the cost of funding a retirement system |
| for its retired public safety employees who are members of the system as provided herein, and the |
| retirement board maintains the right to enforce payment of any liability as provided in chapter 21 |
| of this title. |
| (f) Subject to the provisions of subsection (b) of this section being met, the provisions of |
| this section shall be administered in the same manner provided in chapter 21 of this title; provided |
| that, where the provisions of that chapter conflict with the provisions of this chapter, then the |
| provisions of this chapter shall control. Liability of the municipality is enforced in the same manner |
| as stated in chapter 21 of this title. |
| 45-21.5-6. Transfer of assets. |
| Subject to the provisions of §§ 45-21.5-2(b) and 45-21.5-3(b) being met, no later than July |
| 1, 2022, the system shall be responsible for administering the West Warwick plans and West |
| Warwick shall transfer to the system the accumulated contributions of each member entering the |
| system, the assets related to the actuarial accrued liability of those transferred employees and any |
| other assets of the West Warwick plans. |
| 45-21.5-7. Funding improvement period. |
| Subject to the provisions of §§ 45-21.5-2(b), 45-21.5-3(b), 45-21.5-4(b), and 45-21.5-5(b) |
| being met, the funding improvement plan submitted by the town of West Warwick on March 29, |
| 2014, shall have a funding improvement period of twenty (20) years for purposes of § 36-10.2-8. |
| 45-21.5-8. Withdrawal from the municipal employees' retirement system. |
| Withdrawal of any West Warwick plan that has joined the municipal employee retirement |
| system pursuant to this chapter shall be as provided in § 45-21-5 and subject to §§ 45-21-6 and 45- |
| 21-7. Any such withdrawal shall not relieve West Warwick from the liabilities arising from its |
| membership as set forth in §§ 45-21-5, § 45-21-6, or § 45-21-7. |
| SECTION 2. This act shall take effect upon passage. |
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| LC002999/SUB A |
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